Canada mulls incentives for used electric vehicles as part of gas car phase out

PTC Web Desk: A government report has suggested the potential introduction of federal incentives for used electric vehicles, aligning with Canada's push to phase out gasoline-powered cars.

In the latest emissions reduction progress report of Canada, there is mention of exploring the expansion of the Incentives for Zero Emission Vehicles (iZEV) programme to encompass pre-owned vehicles. However, the report's concise three lines lack comprehensive details.

Both Transport Minister Pablo Rodriguez's office and Environment Minister Steven Guilbeault's office, when approached for comments, did not confirm any ongoing discussions regarding the expansion of the incentive programme. 

In a media statement, Rodriguez's office referred to his recent ministerial mandate letter, emphasising the commitment to enhancing the affordability and accelerating the adoption of zero-emission vehicles, including pre-owned ones, by Canadian households and businesses. Notably, the mandate letter does not specifically outline incentives for used vehicles. The limited content in the recent government report seems to mark the initial indication from Ottawa regarding this potential direction.

Several provinces, such as Nova Scotia, New Brunswick, and Quebec, currently offer incentives to consumers for purchasing pre-owned electric vehicles.

During a recent press conference, Guilbeault appeared to be unaware of the government's contemplation of this move. He mentioned the existing federal purchase incentive of $5,000 and expressed uncertainty about potential future changes or adaptations.

Recently, the federal government announced finalised new regulations mandating that all newly sold vehicles, including cars, SUVs, and specific pick-up trucks, must be fully electric, plug-in hybrid, or fuel cell electric by 2035. A think-tank has urged Ottawa to extend incentives to cover pre-owned vehicles.

Joanna Kyriazis, director of public affairs for Clean Energy Canada, highlighted the growth of the pre-owned market and stressed the necessity to assist lower and middle-income Canadians in purchasing pre-owned electric vehicles, citing the substantial cost savings they offer.